The UK governments Department for Business, Innovation and Skills (BIS) has launched a consultation (Download the .PDF) on new proposals to help free up radio (wireless) spectrum among the country's five main mobile network operators for use by Mobile Broadband ( 3G , 4G )services.

Presently the 900Mhz band is only owned and used by O2 and Vodafone for older 2G services (mostly voice calls). However under the Digital Britain plan this 2G spectrum could be converted for use by 3G and 4G Mobile Broadband ( UTMS , HSPA , LTE ) services.

The advantage of such a move is obvious; you immediately gain more 3G Mobile Broadband coverage (aiming for 90% of the population) and require fewer base stations, thus also saving money. However O2 and Vodafone are understandably reluctant to lose any of their competitive edge.

The recommendations made by the Independent Spectrum Broker (ISB), Kip Meek, seek to solve this problem in a number of ways. This would include measures to auction newly available frequencies in the 800MHz and 2.6GHz bands, which would allow for the use of new next generation Mobile Broadband solutions (i.e. mobile WiMAX, an alternative 4G Mobile Broadband technology).

Firms currently holding 900MHz spectrum will also be forced to provide wholesale access in rural areas, where the predominantly 2G spectrum could be converted to deliver Mobile Broadband (3G) to more remote locations. This protects 900MHz in areas where there is already good coverage of rival spectrums and appears to be a good compromise.

800MHz and relinquished / re-awarded 900MHz licences must also contain a retail service obligation to provide services to 99% of the population at downlink speeds of 1.5Mbps within three years of the nationwide availability of the entire 800MHz spectrum. In addition, operators will also face caps on the amount of radio spectrum they can use, thus preventing any single operator having too much control.

Finally, existing spectrum will be made tradable between operators and their licenses indefinite - subject to annual license fees. This is critical for any of the above to work.